Comments on: Simons On Government’s Accounts Receivables

By: DQD

DQD — Sun, 14 Mar 2021 17:27:08 +0000

You very correctly depict the problem. The solution lies in dealing with it realistically:

As a small business owner who has taken a big hit from Covid as a lot of what we do depends on visitor arrivals, just making payroll, health insurance, pension are a struggle enough, let alone having to deal with taxes at this moment in time. Collect the taxes and that’s us done. I’m sure there’s no shortage of others in the same situation.

There’s a tendency to depict business owners as mean spirited and that it is entirely justified to go after them personally to collect unpaid monies – a lot of recent legislation holds directors and officers personally liable for various unpaid taxes, including redundancy pay (this is a tax, in most countries it comes under unemployment and is paid by Government). What is not recognized are the risks and personal sacrifices we take by being business owners. I think a lot of us are at our limit and no longer interested in taking this platitudinous BS. A big tax write down is long overdue.

By: Watching

Watching — Sat, 13 Mar 2021 20:25:56 +0000

Accounts receivable have always been a major problem for all governments in Bermuda. Back in the good old days, a government could collect enough from the conscientious contributors to run the country. Those that didn’t pay were slapped on the wrist. As time progressed, more and more people joined the ranks of the non payers because they astutely noticed that the wrist slap wasn’t that painful. As covid 19 spread throughout the world, many Bermudians lost their jobs and this then resulted in an inability to pay. The hands of government were then tied tighter with no ability to collect and no way to prosecute. The problem is now so serious and the solution unavailable and impossible to achieve. The conscientious payers have diminished in numbers and the dodgers have increased. There is no solution.

By: Joe Bloggs

Joe Bloggs — Sat, 13 Mar 2021 16:32:26 +0000

That defence of the Government may be valid today and since April 2020, but the issue is a very old one. Indeed, more than 10 years ago the PLP Government established a debt collection unit within the Attorney-General’s Chambers. That debt collection unit currently has no staff and that has been the case for at least the last 3 years.

There is no political will to collect the debt because the debtors tend to be small Bermudian businesses and may be presumed to be PLP supporters

By: Ringmaster

Ringmaster — Sat, 13 Mar 2021 13:39:24 +0000

The $350m needs to be broken down into the various tax bases. For example, old payroll tax is unlikely to be recovered because companies are left to fail and a new one formed, but it’s a failure of the system to allow this to happen. Follow the owners/shareholders. Land tax should be more easily recovered as there is an asset to be leveraged.
Non payment is criminal but the penalties are probably less than the tax not paid so why pay? When was the last time someone went before the courts? More jail time and name and shame might help.

By: LOL - the real one

LOL - the real one — Sat, 13 Mar 2021 13:21:49 +0000

The real issue is that we have government employees who have not done their jobs for years and let the money go uncollected.

By: Shawn

Shawn — Sat, 13 Mar 2021 10:54:05 +0000

Mr. Simons, what policies and/or practices did the OBA have in place to collect the outstanding AR? How effective was the OBA in collecting outstanding AR during their time as the Government? What solution did the then Finance Minister implement and was it successful? According to the Auditor´s Report to the House during the OBA administration, the AR climb from $225 million to $282 million with allowance for doubtful accounts from $87 million to $125 million. What’s that saying – calling the kettle black? Offer a solution instead of stating the problem. At less, the current Finance Minister is doing something to collect the outstanding AR.

By: Sandgrownan

Sandgrownan — Sat, 13 Mar 2021 02:20:41 +0000

Why should he? These idiots wouldn’t listen in any case. The whole reason we’re in this mess is because the PLP are rooted firmly in the past. And their fundamental incompetence and ability to turn everything into dog sh*t.

By: Cannot Collect What Is Not There

Cannot Collect What Is Not There — Fri, 12 Mar 2021 21:20:09 +0000

You cannot collect what is NOT there: If Government were to come down hard IRS style the net result would undoubtedly be more foreclosed homes and more shuttered businesses, ultimately no good for anybody other than ‘Let them eat cake’ types. The elephant in the room remains how we tax, which is the only way to properly solve this mess. Well done Mr. Simons for highlighting it, you should also propose a solution.